Electricity price hikes.

worlds goodest teecher

Am I right in saying that electricity suppliers can raise their prices within a contract period? My electricity supplier has just written to advise of another price increase, the third since March.

L1011

It depends on your contract but in nearly all cases, yes. You usually agree a contract based on a notional % discount from their standard unit rates; which can change.

Dempo1

https://www.boards.ie/discussion/2058206919/electricity-price-hikes

Unfortunately these increases are probably to do with levies and not part of of a contractual agreement.

The contract would cover unit prices not levies and yes they are increasing unfortunately. This said keep an eye on your unit price agreed in contract it should not increase persuant to your agreement.

L1011

https://www.boards.ie/discussion/comment/117834346#Comment_117834346

The PSO levy is actually falling (by about a third, or ~€2 a month), not rising; and isn't part of the unit rate either.

Wholesale electricity prices are rising due to an increase in gas prices.

Dempo1

https://www.boards.ie/discussion/comment/117834359#Comment_117834359

Yes understand levy not part of unit rate, I actually thought levies were increasing 🤔 but I'll take that reduction 😏

OP, might then have a point re increases if its not levies 🤔 I wouldn't have thought a supplier could raise unit prices 3 times into a contract 🤔 but of course I'm open to correction, I'm on a very old electric Ireland tariff, I've only seen unit price increase rarely.

Darc19

Natural Gas that produces much of the electricity is at 10 year+ highs.

Its not just here, but all over Europe and many other places in the world have seen multiple price increases this year. UK has seen an average 24% increase (including increases from 1st oct)

Unless you are on a "Fixed Price" contract, prices can go up (and down like they did last year and 2019) in the midst of a contract.

But being a little more energy aware can save substantial amounts - LED bulbs, put washing machine on a 40min / 60 min wash. Less use of tumble dryer. More efficient use of the immersion. Eco setting on dishwasher. and plenty of other small changes that will bring the usage down.

Bojill

It may be more cost efficient to break the contract and pay the early exit fee to switch.

beachhead

I have a year's contract from last March and prices were increased in August.But prices increase without fail in first half or the 2nd half of the year without fail every year on the standard tariff(when I was on it) with or without a contract.Oil price fluctuations are always blamed since the year dot.

Darc19

https://www.boards.ie/discussion/comment/117839127#Comment_117839127

Oil prices are never blamed as oil is not used for generation.

Gas prices are to blame and you can see the live world gas prices on hundreds of financial websites. Currently prices are at eleven year highs.

And prices don't go up without fail. They FELL last year and in 2019.

This year prices have risen worldwide as gas prices are traded on a global basis.